By Jaime Llinares Taboada
Meggitt PLC said Thursday that its revenue fell steeply in the second quarter as the coronavirus pandemic halved activity at its civil aerospace business.
The U.K. supplier of components for the aerospace, defense and energy markets said in a trading update that it expects civil aerospace revenue to be 50% lower on an organic basis in the second quarter, compared with a year earlier.
Overall, the group's revenue is projected to fall organically by 30% in the period, with the defense business remaining solid and the energy unit delivering a softer performance.
Meggitt said it expects its organic revenue to fall 15% in the first half of the year even though its defense business grew. In addition, the company will recognize a significant non-cash reduction in the carrying value of assets related with the civil aerospace business at its half-year results.
The London-listed group added that it is experiencing initial signs of recovery in commercial aerospace, but that uncertainty and risk related to the pandemic remains for the second half of the year.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT